Brazilian Drug Production Rises Sharply

Brazil's drug production was 14.8% higher year-on-year in the first quarter, according to official statistics. This compares with a 3.9% rise in overall industrial output in the three-month period.

The figures should be taken with some caution, as the country's pharmaceutical output remains sensitive to underlying economic trends. For example, the same source reports that drug production in November 2004 was 7.5% lower than in October, reflecting a brief 0.4% slowdown in overall industrial output.

While the figures are encouraging for local producers, the upsurge in pharmaceuticals output comes after many years of declining unit production and severe financial distress for the domestic sector. According to the latest data from industry association Febrafarma, unit output is only now approaching 2002 levels, and the value of production in US dollar terms -- some US$8bn in 2004 -- remains slightly below levels recorded prior to the economic crisis of recent years.